I'm not sure if you've had a chance to check out any of the material from Bill Poulos from Profits Run, but he's normally right on with his techniques and analysis...almost as good as Adam!! He's a big fan of the video education, as we are, and today I've asked him for a favor. That favor is to come and teach us a little about how we ride these markets more effectively...and allow us to watch his 6 part video series on how to become a more independent trader. The videos can be watched HERE.
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Today I wanted to bring to light a major shift that has occurred in the markets. One that isn't getting enough attention, but has the capacity to continue wrecking people's portfolios.
That shift is a movement away from traditional buy and hold investing and toward technical trading.
If you've watched the markets in recent weeks you already know that both the Dow and the S&P500 have traded in a very consistent but narrow range.
And, if you've been watching since late last fall when the markets suffered their worst fall since the Depression era, you would know that the people who are in control of their trading actions are the people less likely suffering from significant drawdowns. Conversely, those who adhered to long term investment strategies are looking at extreme timelines just to recover to a break even level.
Today I'd like to share with you where the shift is happening, and what you can do about it:
In the longer term investing model, money in the market would typically stay 'put' for several years (usually in the range of three to five years). That same money RIGHT NOW is moving in mere DAYS.
That suggests more traders using technical indicators to drive their actions in the market and fewer relying upon fundamental indicators. As well, the speed at which the market prices are moving dictates the need for AGILITY -- traders need to be doubly aware of their risk management practices and completely UNEMOTIONAL about executing them.
What you MUST do:
Get control right now of your portfolio by learning to become an INDEPENDENT trader.
I've found some individuals aren't prepared for this, because they're what I call "DEPENDENT" traders.
DEPENDENT traders rely entirely on the media to "spoon feed" them "market info" and "hot tips"... they still think holding on to a stock and praying for it to go up is the way to go... and they don't have a plan they can follow regardless of what the market does.
To help more traders get on the INDEPENDENT express, I recently re-released my 6-part COMPLIMENTARY video series which will help people to adapt and use a new approach to give them the flexibility required to prosper in today's markets.
I believe that right now is the time to attack the market, not run away from it. Even though the economy is in recession, you can prosper -- and in the complimentary video series, you'll learn 5 'recession-proof' trading attack plans you can execute RIGHT NOW to enhance ANY trading method at ANY time, in ANY market.
Watch the videos HERE
The bottom line, however, is simple: the markets have changed and those who adapt and change with the markets have the greater opportunity to prosper. Those who fail to adapt will likely be left behind.
Bill Poulos
